Rafael signs agreement to turn Volkswagen plant into German defense hub
Rafael Advanced Defense Systems has signed a declaration of intent with the German state of Lower Saxony and Aurelius Capital to transform Volkswagen’s Osnabrück plant into a center for security and defense technologies.
The first phase of the proposed partnership will focus on developing and producing components for air-defense systems. Rafael has previously examined the site for production linked to its Iron Dome system, including launchers, heavy military vehicles, power generators, and other equipment, though Tamir interceptor missiles are not expected to be manufactured at the German facility.
The Osnabrück plant employs approximately 2,300 people and has faced uncertainty as Volkswagen restructures its German manufacturing operations. The new framework would allow Lower Saxony and Aurelius to participate in the future of the site, while Rafael would contribute defense technology and industrial expertise.
The declaration is not yet a final transaction or production agreement. The next stage will include detailed negotiations, regulatory review, and internal approvals, with the possibility that the site could become a broader defense cluster rather than a Rafael-only facility.
Read more in Calcalist.
